Can I Negotiate with a Creditor to Have a Judgment Removed?

Sometimes it’s easier to negotiate with a creditor yourself than to commission a legal consultant. But how would one go about this, and what are the strategies to be employed? Read on for everything you need to know about negotiating with creditors to get a judgment removed.

A judgment is a public record of a time you defaulted on a payment. You can negotiate with a creditor to have a judgment removed, but it’s not guaranteed.

Negotiation Strategies

Here are some strategies to try out:

Full Payment

The most likely scenario for judgment removal is if you pay the entire judgment debt, including interest and court fees. This eliminates the creditor’s financial incentive to keep the judgment on record.

Settlement Offer

You can propose a lump sum payment that’s less than the full judgment amount. The creditor may be willing to accept this offer to collect some of the debt rather than potentially getting nothing.

Pay for Deletion

In some cases, creditors might be willing to remove the judgment from your credit report in exchange for a payment, though this isn’t as common.

Factors Affecting Success

What factors influence your success in negotiation?

Creditor’s Policy

Some creditors have policies regarding judgment removal, and they may not be flexible.

Age of Judgment

Older judgments are less likely to be removed, as the creditor may consider them uncollectible.

Your Creditworthiness

If you have a good credit history and a steady income, you may be in a stronger negotiating position.

Can You Remove a Judgment Yourself?

Yes! With a strategy known as ITC clearance. ITC, now known as TransUnion, is a major credit bureau in South Africa that stores your credit history and generates a credit score to assess your creditworthiness.

Here’s how to achieve ITC clearance, which improves your credit score:

  • Qualify with a debt clearance certificate and documents proving you’ve settled your debts.
  • Alternatively, if you’re not over-indebted, get a court order to remove yourself from Debt Review.
  • The National Credit Act (NCA) regulates credit clearance and protects both consumers and credit bureaus.

The clearance process typically takes 3 months and involves removing negative information like debt review flags and defaults from your credit report. However, positive information like your payment history remains. If there are errors in your report, you can dispute them with the credit bureau and the credit Ombudsman.

Negotiate with the creditor to have the judgment removed.

In conclusion, you can employ various strategies to negotiate with creditors since they remove judgments from your credit report. And if they refuse to remove it, you can go forth with ITC clearance! Need help with clearing your credit? Contact Cape Town Legal Consultants today.